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Zara Case Study - Coggle Diagram
Zara Case Study
Relevant Facts
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Customers of Zara are young, fashion-conscious city dwellers
The higher levels don't usually question the La Coruna believing it would centralize the decision making which is something they avoid.
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Zara works in a three cyclical process - Ordering, Fulfillment, and Design and Manufacturing.
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The PDAs used in-store do not have all of the information needed to be as efficient as possible, and they send redundant information.
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Timeline
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The present setting: PDAs are primarily used for ordering, DOS operating system no longer supported by Microsoft, and Salgado and Sanchez are arguing about staying with the working POS systems or upgrading to a new one. August 2003.
Key Problems
- Uncertainty regarding the upgrade of the POS systems
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What is the cause?
This is caused by there being no centralized community to make this decision which leaves the application developers talking about it.
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- Zara's IT needs are unique
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What is the cause?
The cause of this is the fast paced customs of the industry, and the fact that Zara makes 11,000 new items in a year whereas competitors make only about 2,000- 4,000.
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What is the consequence?
The consequence is that Zara may not take the time to create the formalized processes they need, and they would be devastated if their POS systems went down.
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- Zara doesn't have a network between stores or a way to count inventory in certain locations.
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What is the cause?
The cause of this is that the current developed system didn't integrate these functions into its applications.
How did this happen?
This happened because there was either no need for these functions or no push for these functions when the original applications were made.
What is the consequence?
The consequence is that Zara locations have to canvas their stores to understand their inventor instead of looking it up on a technology device, and locations that are in close proximity to each other call each other on the phone to inquire about each other's stock.
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